Receiving ih from abroad and money laundering regs

by **dedalus** on Thu Jan 12, 2012 9:00 pm

Hi,

One is receiving a large sum (>600k) as part of a foreign IH settlement. The money would be wired via bank transfer.
With the money laundering regs in place is the receiving bank likely to freeze the receiving account until "enquiries" have been made?

I read somewhere that even SOCA get invovled. Is this true?

What is the best way of avoiding hassle? Should a separate bank account be opened to receive these funds and a letter sent to the bank
informing them of the transfer beforehand?
is any other documentation required?

many thanks

by **maths** on Thu Jan 12, 2012 9:33 pm

If the monies are part of a legitimate inheritance and can be proved to be so (eg copy of foreign will) no problems should arise. The key is to be able to prove this with documentation.

No requirement to inform the bank and no need for a separate account.

by **dedalus** on Sat Jan 14, 2012 8:41 pm

maths wrote:If the monies are part of a legitimate inheritance and can be proved to be so (eg copy of foreign will) no problems should arise. The key is to be able to prove this with documentation.

No requirement to inform the bank and no need for a separate account.

Ok thanks.

are they likely to freeze the account until they have made enquiries?

by **AvocadoK** on Sat Jan 14, 2012 11:07 pm

According to a money laundering seminar I attended last year, banks use software to flag up abnormal transactions, and will freeze accounts automatically in some circumstances. The best way to avoid this happening is to contact the bank beforehand and ask them what documentation they require.
AK

by **dedalus** on Thu Jan 19, 2012 11:42 pm

Thanks.
I must admit i feel a bit uneasy about having to inform a call centre operator of a significant transaction.
Gone are the days when you could ring the bank manager directly in your branch.
Do you think a letter may be better?

by **maths** on Thu Jan 19, 2012 11:54 pm

Not sure I agree with AvocadoK.

Pre-empting is in my opinion not always a good idea.

As my earlier posting indicated so long as you can prove the nature of the receipt I would wait and see if questions are raised.

No need to prod the sleeping dog unnecessarily!!